As Global Smartphone Shipments Fall To 2-Year Low In Q2, Here's How Apple Did Vs. Samsung And Chinese Vendors

Zinger Key Points
  • Samsung and Apple led the overall smartphone market in Q2, although both saw erosion in market share.
  • Demand weakness will likely continue for an extended period, Canalys analyst warns.

Global smartphone shipments fell to the lowest level in two years in the second quarter of 2022, data from research firm Canalys showed. This followed a brief recovery the market experienced in 2021. The firm also expressed caution regarding second-half performance.

Samsung Leads, But Market Share Shrinks: Global smartphone shipments fell to 287 million in the second quarter, Canalys said. This represented a 9.2% year-over-year drop.

South Korean electronics giant Samsung shipped 61.8 million smartphones in the quarter, giving it a 21% share of the overall market. Quarter-over-quarter, its market share fell 3 percentage points.

Samsung’s aggressive pricing with its low-end A series and cost-effective ODM production, and its focus on foldable phones and S series in the premium segment drive sales, Canalys said.

Tech giant Apple Inc AAPL sold 49.5 million smartphones, but its market share slipped one percentage point quarter-over-quarter to 49.5 million.

Apple reported late Thursday that iPhone sales of $40.76 billion, represented 2.8% year-over-year growth but a 19.6% quarter-over-quarter decline.

Taking Canalys’ shipment number, the average selling price of an iPhone was $823.4 for the quarter.

Apple does not disclose iPhone volumes.

Related Link: Apple Stock Rallies On Better-Than-Feared Q3 Results: What Investors Need To Know

Chinese vendor Xiaomi sold 39.6 million smartphones and its market share remained unchanged from the previous quarter, at 14%. Its Chinese peers Oppo and Vivo shipped 27.3 million units and 25.4 million units, respectively, giving them market shares of 10% and 9%.

“There will be increasing tensions throughout the entire smartphone supply chain as demand weakness will likely continue for an extended period,” said Toby Zhu, Canalys analyst.

Geopolitical issues, a dip in consumer confidence and high inflation will continue to impact future performance, despite upcoming new launches and festival sales in the second half of 2022, he added.

Apple, Honor Outperform In Mainland China: A separate report from Canalys showed all major vendors, excluding Apple and Honor, reported year-over-year declines in shipments in mainland China.

Vivo, however, led the market with shipments of 13.2 million units. Honor reported year-over-year shipment growth of 88% to 13 million units. Apple’s mainland China shipments rose 25% to $9.9 million units.

Apple’s third-quarter results showed Greater China revenue falling 1.1% year-over-year and 20.4% quarter-over-quarter. Greater China encompasses mainland China, Hong Kong, Taiwan and Macau.

On a year-over-year basis, shipments by Vivo, Oppo and Xiaomi fell 28%, 30% and 16%, respectively.

The overall market in mainland China fell 10% to 67.4 million units, reversing the 12% growth reported a year ago.

APPL Price Action: Apple shares added 3.17% to $162.34 Friday morning, according to Benzinga Pro data.

Photo: Samsung/iPhone, Mr.Mikla via Shutterstock

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Posted In: Analyst ColorNewsGlobalAnalyst RatingsTechCanalysChinaHonoriPhoneOppoSamsungsmarphonesToby ZhuVivoXiaomi
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